SBI Q3FY26 Results: Profit Jumps 24.5%, Strong Credit Growth
SBI reported a net profit of ₹21,028 crore in Q3FY26, a 24.5% increase. Strong credit growth, improved NII, and declining NPAs further strengthened the bank's financial position.
SBI Q3FY26 Results: India's largest public sector bank, State Bank of India (SBI), delivered a stellar performance in the third quarter of the financial year 2025-26 (Q3FY26). The bank's net profit increased by 24.5% year-on-year to ₹21,028 crore. This growth was driven by strong net interest income (NII), a sharp increase in non-interest income, recoveries from written-off loans, and a significant dividend from SBI Mutual Fund.
Strong Growth in NII and Non-Interest Income
In the December quarter, SBI's net interest income increased by 9% to ₹45,190 crore. The bank's total loans (advances) grew by more than 15% to ₹46.83 lakh crore. Meanwhile, non-interest income from fees and other sources increased by 66% to ₹18,359 crore, providing strong support to the overall profit.
Improvement in NIM and Asset Quality
The bank's domestic net interest margin (NIM) reached 3.12%, an improvement from the previous quarter. Asset quality also showed significant improvement. Gross NPAs decreased to 1.57% and net NPAs to 0.39%, further strengthening the bank's balance sheet.
Credit Demand Across All Segments
According to SBI Chairman C.S. Setty, credit demand remains strong across all segments: retail, agriculture, MSME, and corporate. Retail loans grew by 15%, agriculture by 16.5%, SME by 21%, and wholesale loans by more than 13%. Based on this confidence, the bank has increased its credit growth forecast for FY26 to 13-15%. Deposit Growth Remains a Challenge
While credit growth remained strong, deposit growth was limited to 9%. CASA deposits grew by approximately 8.9%. The bank says that people are now shifting towards market-linked investment options, which is putting pressure on deposit mobilization.
Future Strategy and Confidence
SBI's focus will be on increasing retail term deposits, strengthening digital platforms, and the RAM (Retail-Agriculture-MSME) segment. The bank also says it is well-prepared to leverage the benefits that the economy will receive from recent international trade deals.
